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In today's rapidly changing market, small businesses that
innovate
survive. But, that's no easy task for a leader. You're
expected to be open to risky ideas while protecting your company
and evaluating what will work. Openness and skepticism often seem
at odds, and finding a successful balance can be tough.

"Innovation pulls leaders in multiple directions," says Sam
Hunter, a psychologist studying innovation at Penn State
University. Learning when and how to employ each mindset will
help you manage the innovation process effectively.

These four tips can help you encourage creative ideas while
keeping your business safe.

1. Accept all ideas at first. At the beginning
of a creative process, while you're generating ideas, you want to
be open to any and all suggestions. "For truly creative thought
to occur, team members must believe it is okay to put forth
different -- often strange -- ideas," Hunter says. Cultivating an
environment of openness will create a sense of safety.

Assume that every idea has the potential to be great. "A leader
must serve as a champion of novel thinking in early stages,"
Hunter says. A terrible idea could inspire a great one, so
encourage people to take risks and give them a safe space to do
that.

2. Aim to improve ideas, not criticize.
Encourage a lively debate and strive to make ideas better. The
original idea might seem outlandish, but you can raise specific
concerns and solutions that help your team hone the idea. It's an
iterative process. With each improvement, the idea becomes
stronger and more feasible.

Be wary if you find yourself nixing ideas as soon as they're
spoken. "Criticism too early is a sign that someone is resisting
simply because change is difficult to manage and it may be more
work for them," Hunter says. Improve an idea as much as you can
before you pass any judgment.

3. Create low-cost sketches or prototypes. After
the initial brainstorm phase, pick out several ideas that are
most exciting to your team. Choose a mix, including some that
seem risky, and find low cost ways to test them out. "Spend some
time letting that idea come to life," Hunter says. "It has to be
far enough along in development that a proper evaluation can be
made."

The key here is to test ideas quickly and cheaply. You might work
on a low-cost prototype, sketch out a plan, or run it by a few
focus groups. An idea that seems silly on paper may be highly
effective in practice.

4. Be skeptical before you spend. Once you have
a sketch or prototype, be as critical as you can. "The skepticism
lens should be brought out when cost is about to incur," Hunter
says. The creative process is over at this point (or temporarily
stalled) and practical concerns take precedence.

Gather all the information you have about each idea and judge how
well each of them will help you reach your goals. Now is the time
to be ruthless -- a fun idea is not necessarily good business.